Property Valuation
A Mississippi commercial building earns $120,000 in annual gross rent. With a 10% vacancy allowance and $30,000 in expenses, the NOI is:
A$78,000✓ Correct
B$72,000
C$80,000
D$90,000
Explanation
EGI = $120,000 × (1 − 10%) = $108,000. NOI = $108,000 − $30,000 = $78,000. To solve this, multiply the relevant values: $120,000 and $30,000 at 10%.. The correct answer is $78,000.. This is a common calculation on the Mississippi real estate exam.
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